Salary.com, Inc. has filed a Form S-1 with the Securities and Exchange Commission to hold an initial public offering.
According to the SEC filing, the company plans to raise $50 million.
Salary.com recently launched a redesign of its site, with an emphasis on promoting the company as an on-demand talent management vendor with an end-user and enterprise focus.
Salary.com, which offers annual or multi-year subscriptions, intends to supplement, and perhaps replace, traditional approaches to compensation management, including paper-based surveys, consultants, internally developed software applications, and spreadsheets.
According to analyst Jason Corsello, director of business and IT services at The Yankee Group, one of Salary.com’s key differentiators is its library of over 3,400 job codes and related compensation data to align pay with individual performance and business outcomes.
In the filing, the company points to a report from the U.S. Bureau of Labor Statistics citing that employee compensation in the United States totaled approximately $5.4 trillion in 2005.
Accordingly, the company notes that employers who underpay their employees risk high turnover, while employers who overpay their employees risk impairing their profitability.
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The company had $15 million in revenue in the most recent fiscal year, as of March 31, 2006, up from $10 million for the same period in 2005. The company’s net loss as of March 31, 2006, was $3 million, compared to $2 million for the same period in 2005.
“We have not been profitable since our inception,” the company said in its SEC filing.
In the most recent quarter, ended June 30, Salary.com took in $5.2 million in revenue, but it lost $834,000, compared to a $722,000 loss the year before.
As of June 30, the SEC report shows that Salary.com had an accumulated deficit of $21.8 million.
If approved, the company will trade on the Nasdaq under the symbol “SLRY.”